How Do You Integrate Digital Marketing

Into Your Business?

Agenda • Overview • What’s out there? • What’s coming? • What’s relevant for me? • How do I take advantage of the opportunities?

Digital Marketing?

Digital marketing is marketing that makes use of electronic devices such as computers, tablets, smartphones, cellphones, digital billboards, and game consoles to engage with consumers and other business partners

Wikipedia

Digital Marketing

Digital Marketing Platforms

Content

Social Media

e-Mail

APP’s Gaming

Digital Signage

Digital Media

Analytics

E-commerce

Why would you want to integrate it into your business?

Communities With Over 100 Million Active Users

China

In 2012 China is already almost at par with US and Japan combined

Source: eMarketer

Chinese shoppers are adopting e-commerce at increasing pace

Source: China Internet Watch

Agenda • Overview • What’s out there? • What’s coming? • What’s relevant for me? • How do I take advantage of the opportunities?

What’s Out There, Social Media? • Facebook • Google+ • LinkedIn • Instagram • YouTube • Pinterest • Twitter • Baidu • SnapChat • WeiXin • Yelp • Pandora • Trip Advisor • Tumblr • Quora • Flickr

• Over 1 Billion Users • Average 75 minutes per day • Income $ 5.1 Billion 2012

• Giving increased visibility to “suggested posts” – Paid for

• 15% of all mobile advertising

Google's new social network, looks a bit like facebook, works a bit like twitter Circles • Categorising your Google + contacts into groups.

– EASY to do – Add as many circles as you like – One person in several circles – Potential issue over-organise

Photos • Functionality pretty much the same as facebook • Likely photos in Google + will rank VERY highly in Google Image search soon • At upload create a new album or add to an existing album. • After uploaded “add tag” just like facebook • Tagged pictures appear on your profile and “pictures of you” in the photo section (like

facebook). • Missing from “tagging level” is tagging on upload, so need to go into each image • Additional functionalities: edit the picture, text and adding comments (speech bubble at right

of picture)

Hangouts • Hanging out with lots of people

simultaneously using video chat • Add one or several of your circles to

your “hang out”. • People invited to join your “hang out” receive a post

in their stream • If less than 25 people in a hang out they will also get

a notification that they are invited • If start a hangout but one is already going on, notified

and can join the current one instead • Hangout open, since anyone can invite anyone else,

people you don’t know may and can join

• Instant Photo Upload from Mobile – Automatically puts all photos you take on your phone to

a private album on your Google + – You then decide whether to share them with any circles – Currently only for Android

• Sparks – Personalised content feed into your stream, you tell “Sparks”

what you are “in to” and they will send you stuff that’s relevant to you

• Huddle – “group chat”, allows you to chat with several people at once over your mobile – Text messaging on steroids – Only for Android

• Is Google + just another facebook? – BIG difference can categorise your sharing – Google + profile and posts are also public, the profiles can be seen by everyone, and

each “post” has its own unique URL making Google + a contender with Twitter for indexable shared content

– This initiative from Google proves they are taking social seriously – Merging Google properties into Google + and integrating it with the SERPs WILL

have an impact

Twitter is an online social networking service and microblogging service that enables its users to send and read text-based messages of up to 140 characters, known as "tweets” • 340 million tweets daily • 1.6 billion search queries per day

YouTube is a video-sharing website, created in February 2005 and owned by Google since late 2006, on which users can upload, view and share videos. • 72 hours of video uploaded every minute

• Social networking website for people

in professional occupations. • Launched on May 5, 2003 • June 2013, 225 million acquired users in

more than 200 countries and territories

Instagram • Online photo/video-sharing

and social networking service • Take pictures and videos • Apply digital filters • Share them on a variety of

social networking services, such as Facebook, Twitter, Tumblr and Flickr.

• 2010: 1 million users • 2012: 100 million users • 58 photos uploaded every second

Pinterest • Pinboard-style

photo-sharing website • Users create and manage

theme-based image collections such as events, interests, and hobbies.

• Users can browse other pinboards for images, • "re-pin" images to their own pinboards • "like" photos

SnapChat

• Photos, videos, text and drawings

• Send to controlled list of recipients

• Set time limit for recipients to view 1 to 10 seconds, then hidden from recipient's device and deleted from snapchat server

• Just over 1 year old • 60 million photos per day • 5 Billion snaps per year

• The service allows users to post multimedia and other content to a short- form blog.

• 110 million active users

Time Spent On Platform Aug. 2012 – May 2013

(Mill

ion

Hour

s)

QQ from Tencent • IM, online games, music

shopping, microblogging, group & voice chat

• Chat rooms, dating • 798 million active users, peak 176 million

simultaneous • Diamond membership

– 7 levels • Revenue driven by added value services

• Social Mobile Network from TenCent • Launched October 2010

• May 2011 5 million users • End 2011 50 million users • March 2012 100 million users • April 2012 rebranded as WeChat for international market • September 2012 200 million users • January 2013 300 million • Today largest in World • May 2013 Rainie Yang product endorser • India Varun Dhawan & Parineeti Chopra from Bollywood • July 2013 70 million users outside China, Lionel Messi latest product

ambassador

1. Download loads of new animated stickers from the Sticker Shop ($0.99) 2. Save favorite content clippings from chats or Moments 3. Add friends nearby easily with the new Hold Together function 4. Swipe to the right to return from a chat. 5. Double tap the Chats tab to cycle through unread chats 6. Scan bar code, cover of the book or album, street view and word 7. Play games with your friends in Game Center (preinstalled airplane war) 8. Combined credit/debit cards and mobile paying 9. Input by voice 10. Double-tab the text to show full text

• Tencent • Blogs, diaries, photos, music • Customize to personal taste (paid) • Canary Diamond to access everything

at no further charge • Mobile at extra cost

Sina Weibo • Hybrid of FB & Twitter • Microblogging • Strong in Tier 1 cities • Position threatened by Weixin • Revenue driven by advertising

Tencent Weibo • Microblogging • 140 characters • Web / SMS / Smartphone • 277 million users

• Pengyou literally “Friend” • Emphasis on real people • Social & Corporate areas

– Friends can become fans of companies

• 259 million users

• “Everyones website” • Facebook copy • Aimed at college students • Claimed 160 million users

– Later modified to 31 million active in last month

• Many services:

– Chinese language-search engine for websites, audio files, and images. – 57 search and community services including Baidu Baike, an online collaboratively built

encyclopedia, and a searchable, keyword-based discussion forum.

• October 2012, Baidu ranked 5th overall in the Alexa Internet rankings • During Q4 of 2010, 4.02 billion search queries in China,

Baidu market share 56.6%. • China's internet-search revenue share in Q2 2011 by Baidu is 76% • Baidu provides an index of over 740 million web pages, 80 million images,

and 10 million multimedia files. • Baidu offers multimedia content including MP3 music, and movies, and is

the first in China to offer Wireless Application Protocol (WAP) and personal digital assistant (PDA)-based mobile search.

• Baidu released its low-cost smartphone, Changhong H5018

e-commerce

• Network, Attention & Gift economies • Auction based business model • Multiple product listing by different buyers

and sellers, including used goods • Users in 150 markets • 88 million active users • 150 million listings globally

• Started with books • 16 categories 15 years later • $2.8 Billion within 5 years, today $48 Billion • 152 Million customers • 51,000 employees • Largest on-line seller of music in 120 days • Co-branded web store with ToysRUs

eMarketer/iResearch Inc.

Price is cheaper than offline stores, 51.8%

Convenient, delivery to door, 19.3%

Rich product assortment, more

choices, 15.9%

Able to buy the products which are hard to find offline,

6.4%

Rich product information, can self-

helpful choose products, 6.1%

Others, 0.6%

2010 Reasons for Online Shopping

2011.4. iResearch Inc.

Why do potential eShoppers Not shop online

• Credibility is still the top barrier

70.6%

50.3%

25.6%

25.3%

24.0%

19.7%

18.4%

17.6%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Worrying about product quality

Worrying about websites' credibility

Slow delivery of online shopping

Online Consumer service is not convenient

Picing is higher

Website registration and shopping process is too complicated

Don't have online banking, inconvenient payment

Can't find the products online

2010 Reasons for China Potential eShoppers Not Ordering Online

Credibility

2011.4. iResearch Inc.

How do they get product information?

Go to shopping websites directly

68%

Search Engine 11%

Shopping Navigation

Websites, rebate websites

8%

Offline Stores

7%

Vertical specialty forums

6%

Others 1%

2010 Information Source before Purchase for China eShoppers

2011.4. iResearch Inc.

Current market dominated by C2C but by 2015 B2C transactions are expected to make up 40% of the market

Brands can establish online relationships of their own to influence

purchase

Dominant C2C e-commerce platform based on a marketplace model like eBay. It facilitates consumer -to-consumer retail by providing a platform for small businesses and individual entrepreneurs to open online retail stores. Unlike eBay however its revenues come from seller-paid rankings in search results (“Taobao Express”) and its sale of user-defined storefronts (“Taobao Hot Store”). Sellers’ positions on the results list depend on their bidding prices. They also pay on a per-click basis for their positions.

. iResearch Inc.

Tmall.com is China’s no. 1 B2C platform owned by Alibaba/Taobao. Unlike Taobao, Tmall sells mostly quality and brand name goods : over 70,000 international and Chinese brands from more than 50,000 merchants and serves more than 180 million buyers. P&G, Adidas, UNIQLO, GAP, Nine West, Reebok, Ray-Ban, New Balance, Umbro, Lenovo, Dell,Nokia, Philips, Samsung, Logitech and Lipton 51.5% SOM in Revenue

Second largest B2C e-tailer in China started out as a 3C specialist but has expanded aggressively to outpace its main rival Dangdang . Sells mainly electronics and home appliances, but also books and clothing. 360Buy also has a full online travel service, and a separate luxury mall for couture brands at 360Top.com. 22.7% SOM in Revenue

Amazon entered China in 2004 by acquiring a local shopping site called Joyo.com. Originally an IT information and download site it turned into an online bookstore then expanded into commodities. It now focuses on its core products more in the manner of a western company, rather than trying to cover everything as Chinese businesses attempt to do.

3.5% SOM in Revenue

The biggest ‘brick &mortar’ electronics retailer wants to transform itself into an e-tailer so that it doesn't suffer the same fate of similar chains crumbling to dust in the US and the UK. Suning will soon diversify into online travel booking - following the path led by 360Buy.

3.1% SOM in Revenue

Agenda • Overview • What’s out there? • What’s coming? • What’s relevant for me? • How do I take advantage of the opportunities?

What’s Coming Next? • Data, loads of data • Move from collecting to connecting data • Structured vs. Unstructured data • Integration of technologies • Monetization of Social Media

– 146 million to App Store & Google Play last 30 days – Ads

• Ads in APPs • Proliferation of Android devices • Shift towards image based communications • Chrome & Android merge • 4G

Agenda • Overview • What’s out there? • What’s coming? • What’s relevant for me? • How do I take advantage of the opportunities?

So What Should You Do? • Get engaged

– Talk to your customers – What are their media habits – How and when do they like to hear from you? – How often?

• Develop a strategy • Make someone responsible

– To manage social media & e-commerce – Who can respond to what – be clear!

• Set objectives • Measure against them • Linkage • Buy ads?? • Viral?????

Tracking & Analytics • Identify unique visitors? • Track them over time • Issue: gateway IP addresses

– JavaScript & HTTP cookies very unreliable on mobile browsers

– Need to create unique user identities on the server side • Can you see visits from the same person across

different devices? PC, tablet & smartphone • Can you link visits, downloads and any other

interaction to sales? • Can you link on-line & off-line activity?

All Marketing Programmes • Relevance • User experience • Ease of participation • Relationship with brand • Data protection

Agenda • Overview • What’s out there? • What’s coming? • What’s relevant for me? • How do I take advantage of the opportunities?

The Challenge for Companies has transitioned from generating engaging conversations to creating content that consumers will independently and virally share

• Managing product reviews on e-commerce and social networking sites critical to success

• Make sure frontline staff fully on-board

Some Tips 1. Be real – advertising on social media, whether it is paid or unpaid, is a

chance to put a human face to the brand, and an opportunity to engage with customers in just the same way that great service can in a shop.

2. But not too real – if you’re running a coffee shop, you’ll only alienate customers by expounding on global politics. But it never does any harm to emphasise that, say, your coffee is fair trade.

3. Follow the right people – Britain’s police forces got into trouble for paying too much attention to Kirstie Allsopp and Lady Gaga on Twitter, and not enough to the public. Every business should follow those who are already customers, and those who could be. Which is still unlikely to be Lady Gaga.

4. Engage in the conversation – if a fan says you’re great, retweet it. If they say you’re rubbish, ask for more details.

5. But don’t be too public – there’s no shame in asking a customer to email you if you want a little more privacy.

Some Tips 6. Think multimedia – pictures, audio and even video are all almost

effortless thanks to the smartphone. If you operate from a particularly interesting venue, or a customer doesn’t mind you using them as a case study, get cracking.

7. But don’t compromise on quality – a poorly produced video is just as damaging as a misspelt blog post.

8. Stay current – few things are worse than a site that hasn’t been updated in weeks, especially on Facebook or Twitter. These are living, breathing places, not simply shopfronts.

9. Put someone in charge – you wouldn’t dream of not taking your cash to the bank regularly, so think of updating Twitter or Facebook as similarly important. It’s a tool for retaining and recruiting customers, after all. And it may be a good chance for a bright young employee who would benefit from “social media experience”.

10. Don’t forget the law – if you retain a list of customers, you are responsible for keeping their data safe. And no one wants to think you just sold on their details.

Why brands matter in China 1. Western brands are generally perceived as higher quality and safer,

with more ‘cool-factor’. According to BCG, 61% of Chinese would pay more for US-made products.

In certain categories, the preference is even higher.

2. The World Luxury Association found 86% of Chinese consumers refuse to buy luxury goods labeled “Made in China”.

3. 61% of Chinese have less confidence in local food than in 2011, and 28% expect to replace their domestic purchases with imports says Ipsos.

4. 75% of China’s affluent middle class live in ‘smaller cities’ where there are no bricks & mortar stores stocking the foreign brands they want. There are over 200 cities with a million plus people in China, and going

online is the easiest and most efficient way to reach them.

How can brands influence shoppers online?

• Traffic Building • Positive Review

Generation • eMerchandising • ePackaging • eCouponing • ePromotions • Mobile Wallets • In-store mobile • Social Shopper

Traffic building on key sites

• Consistent online content strategies across multiple platforms

deliver better results. • Always offer the “buy now’ option

Positive review generation

• More than 40% of Chinese online shoppers read and post product reviews online – about double the percentage of online shoppers in the U.S. (Source:

BCG)

eMerchandising/ePackaging/ eCouponing/ePromotions

In store mobile to mobile sites

Payments: Mobile

payments via mobile wallet applications

Purchasing : purchase on a website, pre-order for pick up, order for home delivery

Rewards: Scan loyalty card, receive rewards for coming to a store, enter products reward information

China Social Shopper

• 95% of Internet users in Tier 1, 2 and 3 cities in China are registered on at least one social media site – Spend 46 minutes /day on social media sites, (37 minutes in the U.S., 7

minutes in Japan.)

• Tencent Weibo (310 million) • Sina Weibo (250 million), • Renren, (137 million). • Kaixin, (116 million) • Mogujie • LinkChic • Xinxian

Things to remember about China e-commerce

1. Incredible growth rate

• E-commerce in China will go from representing 3.3 percent of the country’s total retail value today to 7.4 percent in 2015.

• It took the United States ten years to achieve that growth.

2. Availability and geographical limitations

• Up to 25% of e-commerce demand is for products consumers cannot find in physical stores

– Limited geographic coverage of physical retailers due to sheer size of the market.

– Many consumers, especially the younger ones, first enter in contact with a brand or type of product on the Internet.

3. New rules apply

• Unique relationship between search engines and retail sites

• In most markets, shopping begins with a Google search.

• In China, Taobao.com blocks the spider of the top search engine, Baidu.com. Most shoppers start their search within Taobao.

4. Credibility is paramount

• Managing product reviews on e-commerce/social networking sites is critical to success.

• Chinese consumers are the most likely in the world to check for product recommendations on social networking sites.

• Only 19 percent of consumers in China go to official brand or manufacturer sites, compared with 41 to 60 percent in Japan, the United States, and the European Union.

5. Buy now, pay later

• Most payments are only processed after until the shopper receives the order.

• Alipay has grown to become China's biggest online payment company by processing more than 1 billion yuan ($146 million) in transactions every day and is expected to surpass PayPal's transaction volume within two years.

6. Affordable shipping /convenience

• The low cost of shipping and speed of deliveries in

China gives e-commerce an ongoing boost.

7. High purchase frequency

8. Increasingly higher spend

• Within five years, most of today’s online shoppers in China will be spending RMB 6,220 (or about $980) per year, twice what they are today.

• That’s close to the U.S.

average of $1,000.

9. Home grown models rule

• Western business models have failed in China with growth coming from local players who deliver solutions based on local market knowledge. Taobao actively makes product recommendations and provides

suggestions and tips, promoting a sense of social community, entertainment news and fashion trends, along with product reviews and practical tips for online shoppers.

Flexible and innovative technology platforms adapted to Chinese environment Censorship / local rules Local competition

10. Retailers can be a barrier to brands engaging with shoppers

• Retailers have a lot of power and they are brand neutral so winning them over is the number 1 challenge

And don’t forget! Basic rules of retail still apply

1. Availability and visibility – Treat online as any other channel and make sure your brand is seen

– Sound 4P strategy and engage etailers like the B&M stores

2. Information and education – The more facts shoppers can get from your brand/site, the better

they’ll feel about being well informed enough to buy.

3. Leverage WOM – Use reviews and the power of peer endorsement on and off line

4. Drive sales – Insure all touchpoints converge to a sale across the paid, owned and

earned media channels

Thank Your Customers

If I tell my Facebook friends about your brand, it’s not because I like your brand,

but because I like my friends